Occupancy Level and Productivity in Rural Tourism Establishments: The Case of Galicia, Spain

Fidel Martínez Roget and Xosé A. Rodríguez González

Tourism Economics, 2006, vol. 12, issue 2, 279-289

Abstract: The degree of capacity utilization affects the measurement of total productivity. This paper uses establishment occupancy level as a proxy for establishment capacity utilization. Accordingly, the authors decompose total factor productivity (TFP) growth into technical progress, changes in allocative efficiency, changes in occupancy levels, changes in technical efficiency and scale effects. The empirical results show that the occupancy level component offers the most important contribution to TFP. Policy implications are offered in light of the results.

Keywords: rural tourism; capacity utilization; production function; technical efficiency; scale effects; total factor productivity; Galicia (search for similar items in EconPapers)
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:12:y:2006:i:2:p:279-289

DOI: 10.5367/000000006777637485

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